Can a Car with an Outstanding Mortgage Loan Be Sold?
1 Answers
A car with an outstanding mortgage loan cannot be sold. The specific reasons and solutions are as follows: Specific reasons: When a mortgage is taken out, the mortgage documents are held as collateral by the lending institution. Even if the documents are not physically with the lender, they can still be tracked in the relevant system. Before the loan is fully repaid, the lending institution will not return these documents to the borrower. Without these documents, the car cannot be legally transferred, making it unsellable. Solutions: If you wish to sell a car that is under a mortgage, you can ask the borrower to take out a loan to pay off the remaining balance of the car and complete the process of releasing the car's mortgage. Once the balance is paid off and all related procedures are completed, you can then repay the loan used to purchase the car.